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Manager says spending to rise to maintain services

Public- school funding could see 3 percent hike

By Grant Welker, gwelker@lowellsun.com

Updated:
01/22/2013 09:37:23 AM EST

CHELMSFORD - Town spending will rise in fiscal 2014 only enough to maintain current service levels, according to the town manager, who said projected increases in local revenue will likely be offset by cuts in state aid.

The proposed budget, which Town Manager Paul Cohen will officially present on Jan. 28, will not allow for an increase in staffing for general government, such as police, fire and public works. Public-school funding is proposed to rise by 3 percent, or just over $1.4 million.

Other projected increases are only slight, such as $225,000 for health insurance, or roughly $150,000 for the town's rising contributions to Nashoba Valley Technical High School in Westford, where Chelmsford students have made up a larger enrollment.

A few factors are still undetermined, including Gov. Deval Patrick's proposed budget, which will be released Wednesday, and health-insurance premiums for employees, which will be released in February. Nashoba Tech assessments are scheduled to be released Feb. 1.

State aid is projected to fall by $225,000, or 1.5 percent, in fiscal 2014, which begins July 1, according to the town's projection. That continues a drop of $611,000 in state aid during the past five fiscal years.

"I don't think that point can be emphasized enough," Cohen said of falling state support.

Cohen, Town Accountant Darlene Lussier and Finance Director John Sousa presented their budget outlook and review Jan. 10 to the Board of Selectmen, Finance Committee and School Committee.

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The proposed operating and capital budgets for fiscal 2014 will be presented to selectmen Jan. 28.

Lussier updated officials on local revenue so far this fiscal year. Taxes from meals and hotel rooms are up 10 percent compared to the prior year, while revenue from building permits is down 50 percent, she said.

Fiscal 2012 benefited from projects including a new CVS, Stop & Shop and a new Lowell General Hospital office building.

Town funding for capital projects has stayed flat in the past decade, Sousa said, which due to inflation has left the town with less purchasing power now than in 2002.

Capital spending, which accounts for less than 3 percent of the budget, includes proposed school facility improvements, public-works infrastructure and school technology in fiscal 2014.

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